Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Cobalt 27 Capital Corp. (KBLT-X) says it has an agreement to acquire from a subsidiary of Vale S.A. an amount of finished cobalt equal to 32.6 per cent of the cobalt production from the Voisey’s Bay Mine, including from the proposed expansion, starting Jan. 1, 2021. Upon closing, Cobalt 27 says it will pay Vale an upfront cash consideration of US$300-million, which the company said will represent a prepayment of a portion of the purchase price for the sale of cobalt to Cobalt 27.
In a separate agreement, Wheaton Precious Metals Corp. will acquire from Vale, an amount of finished cobalt equal to 42.4 per cent of the cobalt production from Voisey’s Bay, starting at the same time. On Monday, Vale announced its plans to proceed with the construction of the expansion, which is expected to have its first full year of production in 2021.
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Ballard Power Systems (BLDP-Q; BLDP-T) says it has signed a 3.5-year extension to its current technology solutions contract with Audi AG, part of the Volkswagen Group. It says the HyMotion program has been extended to August 2022 and the total value of the contract extension is expected to be about $80-million to $130-million
Ballard says it signed an initial four-year contract with Volkswagen AG in March 2013, followed by a two-year extension in February 2015, with the full six-year contract term running to March 2019. Audi assumed leadership of the program in 2016, the company said.
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Automotive Properties Real Estate Investment Trust (APR.UN-T) says it plans to buy the Country Hills Volkswagen dealership property in Calgary for about $18-million. The REIT will issue 480,522 trust units valued at approximately $5-million, based on a price of $10.40 per unit, and the remaining $13-million will come from cash on hand and through draws on its credit facilities.
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AutoCanada Inc. (ACQ-T) acknowledged receipt of a letter from Clearwater Capital Management, urging the company to initiate a strategic process. “The company’s board of directors welcomes constructive dialogue with its shareholders,” the company stated. “AutoCanada continues to execute a strategic plan that was reset following the first fiscal quarter of 2018. The focus of the plan is to strengthen the company and enhance long-term shareholder value.” It said the board and its advisors “will consider the position of Clearwater and respond in due course.”
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CannaRoyalty Corp. (CRZ-CN) says a company it owns a 16.5-per-cent stake in, Anandia Laboratories Inc., has signed a binding term sheet to be acquired by Aurora Cannabis Inc. (ACB-T) for approximately $115-million. CannaRoyalty says its equity stake is valued at approximately $19-million based on the acquisition valuation, representing an almost 400-per-cent return on investment.
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Precision Drilling Corp. (PD-T; PDS-N) says it expects to complete a partial redemption of US$50-million senior notes on June 15. Precision has also made open market repurchases totaling US$8-million in notes. “Both the partial redemption and open market repurchases were funded with cash flow generated in the second quarter,” the company said. “These transactions account for total debt reduction of approximately $75-million with annualized interest savings of approximately $5-million.”
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DAVIDsTEA Inc. (DTEA-Q) says sales for the first quarter ended May 5 decreased by 6 per cent to $45.8-million from $48.7-million in the first quarter of fiscal 2017. Comparable sales decreased by 7 per cent.
“This overall decline in sales can be attributed, in part, to an average decrease in mall traffic and stores located in suboptimal locations, the latter of which we are actively working to correct with select store closures and the renegotiation of subpar lease agreements,” the company stated.
Its net loss was $1.2-million or 5 cents per share compared to net loss of $400,000 or a penny per share in the first quarter of fiscal 2017. The expectation was for sales of $46.9-million and earnings of 7 cents per share.
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InMed Pharmaceuticals Inc. (IN-T) says it plans to raise $10-million in a bought-deal financing. It has entered into a letter of engagement with Eight Capital, as the underwriter, to purchase 11.1 million units of the company for 90 cents each. Each unit includes one common share of the company and one common share purchase warrant that entitlse the holder to acquire one share at a price of $1.25 for 24 months.
The company said it intends to use the net proceeds to support its research and development programs.
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Kinaxis Inc. (KXS-T) says Douglas Colbeth has resigned as a director and chair of the board “effective immediately for personal reasons.” Lead director Ian Giffen has been appointed as chair of the board, the company said.
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Tahoe Resources Inc. (THO-T; TAHO-N) says its president, CEO and director Ronald Clayton will retire effective June 15 and James S. Voorhees will assume his president and CEO roles. Mr. Voorhees has been a director of the company since its inception in 2010, and he will remain on the board following this appointment, the company stated.